Your Path to Debt Freedom
Debt Consolidation Ontario
Debt consolidation in Ontario is a loan obtained through a creditor, generally a bank. You will use the proceeds to pay off all existing debts. A consolidation loan can take the form of a line of credit, a second mortgage on your home, or a bank loan secured by other assets.
In order to qualify for a debt consolidation loan, you must have a steady source of income and supply the bank with a monthly budget. The bank may also require a co-signor or additional security (house, car, etc.)
The Benefits of Choosing Debt Consolidation
The benefits of a debt consolidation loan are the simplification of making one monthly payment and the interest rate can be lower than the rate you were paying on your other debt, i.e. credit cards. The drawback is that even with the reduced interest rate, the monthly payment to reduce your debt may still be too large to carry.
Consumer Proposals – The Alternative to Debt Consolidation
A consumer proposal is a formal offer to your creditors to settle your debts, usually for an amount less than what is owing, but for a greater amount than the creditors would receive if you filed for bankruptcy.
You offer to pay an amount that you can realistically afford, for a fixed period of time – often up to 5 years. It is a legally binding arrangement with all your creditors all at once that only a Trustee can file for you.
Contact Us to Learn More about Debt Consolidation
Our Licensed Insolvency Trustees are here to help you find a solution that works for your financial situation. No matter what the cause of your debt is, we have the strategies you need to reach lasting financial freedom. Contact us for more information about how our debt consolidation in Ontario can help!